An increase in revenues increases net income, and net income increases stockholders’ equity. True or false?.

Karlik Enterprises distributes a single product whose selling price is $15.70 and whose variable expense is $10.30 per unit. The

Nitella [24]

Answer: Company’s break-even point in unit sales is 3900 units

Explanation:

Given :

Selling Price (SP) = $ 15.70

Variable expense per unit (VC) = $10.30

Fixed expense = $21,060

Now,

Contribution per unit = SP - VC = $15.70 - $10.30 = $5.40

Break-even point in unit sales is given as :

= $\frac{Fixed expense}{Contribution per unit }$

= 21060/5.40

=3900 units

8 0

3 years ago

During a recession, a number of workers have their hours reduced by their employers. All else the same, the unemployment rate wi

iogann1982 [59]

Answer:

<h2>The answers in this case are will remain unchanged and will remain unchanged respectively.</h2>

Explanation:

In this case,due to a recession the overall hours of work worked by individual employees or staff are reduced by the employers.
Now,note that it has been mentioned that everything else or every other factor or component in the economy is constant in the economy and thus,unaffected by the recession.
Therefore,it can be reasonably assumed that the unemployment rate will remain the same as there has not been any worker expulsion or layoffs as a result of the recession based on the information provided in the question.
Furthermore,the labor force participation will also presumably remain unchanged as there has been no change in the existing working or employed labor force and/or in the overall population level based on the information presented.

8 0

3 years ago

When the price of pistachio nuts is $7.50 per lb. the quantity demanded is 48 lbs. When the price of pistachios is $9.00 per lb.

ruslelena [56]

Unit-elastic
The amount required is 48 pounds while the price of pistachio nuts is $7.50 per lb. The amount needed is 40 pounds when pistachios cost $9.00 per lb. We can state that the demand for pistachio nuts is Unit elastic when the midpoint formula is applied to calculate the price elasticity of demand.

Unit Elastic - The economic theory known as unit elastic demand holds that when a product's price changes, the quantity desired also changes in an equal and proportional manner. In other words, the percentage change in price and the percentage change in demand for the product are equal. Consider the elastic demand on a basis of units per unit.
For more information about unit elastic please visit - brainly.com/question/14897348
#SPJ4

8 0

2 years ago

The Marigold Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share

Natasha_Volkova [10]

Answer:

The solution the given problem is done below.

Explanation:

Building A: Purchase for a cash price of $600,000, useful life 25 years.

—PV = $600,000.

Building B: Lease for 25 years with annual lease payments of $69,000 being made at the beginning of the year.

Rent X (PV of annuity due of 25 periods at 12%)

PV =$69,000 X 8.78432

PV=$606,118.08

Building C: Purchase for $650,000 cash. This building is larger than needed; however, the excess space can be sublet for 25 years at a net annual rental of $7,000. Rental payments will be received at the end of each year.

PV of Building C—

Rent X (PV of ordinary annuity of 25 periods at 12%)

=$7,000 X 7.84314

PV=$54,901.98

Cashpurchasepriceof…………….$650,000.00

PV of rental income,……………..(54,901.98)

Net present value…………………..$595,098.02

In which building would you recommend that The Black Knights Inc. locate, assuming a 12% cost of funds?

Lease Building C since the present value of its net cost is the smallest.

5 0

4 years ago

Suits for success is a men's clothing store in a large suburban shopping mall. the managers of the store know that their custome

stiks02 [169]

The target customers for this business view suits as an investment. They take the time to find the best deal and make sure it's a quality suit. Their customers are most likely stylish people who want quality but also want a good deal on their suits.

4 0

3 years ago